Indian Economy News

AI spending in India may triple to US$ 5 billion by 2027; US$ 1,703 million spent in 2023

A recent report by Intel and IDC indicates a significant surge in Artificial Intelligence (AI) spending in India, expected to reach US$ 5 billion by 2027, tripling from US$ 1,703.8 million in 2023. Associate Vice President at IDC, Mr. Sharath Srinivasamurthy, forecasts a robust compound annual growth rate (CAGR) of 31.5% between 2023 and 2027, envisioning AI to become ubiquitous across sectors by 2027. In 2023, the bulk of investments, totalling US$ 209 million, were directed towards AI infrastructure provisioning and associated software. Augmented customer service agents, digital assistance, augmented threat intelligence, and program advisors’ recommendation systems also saw substantial investments.

Vice President and Managing Director of Intel India Region, Mr. Santhosh Viswanathan, underscores India's readiness for AI adoption, with the country being a significant contributor to global data production and ranking as the third-largest market worldwide. Additionally, He highlights India's leading position in terms of technical skill availability, further bolstering its AI readiness.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.